Affording a home improvement project counts for a lot. If this is a challenge, then it might take away the joy involved with the project.
So, here are 4 financing options for your home improvement projects:
1: A Short-Term Personal Loan
If your credit history is good, then it might be time to check with a bank or credit union. You might qualify for a short-term personal loan. The loan term might range from 24 to 60 months. Of course, rates will vary based on your credit score. The amount of cash you borrow as well as the term will also vary.
2: Cash-Out Refinancing
If your home has gone up in value, then it’s time to consider cash-out refinancing. This will work especially if you paid a large amount of your mortgage principal. While higher mortgage payments are likely, it will still finance your home improvement work.
3: Contractor Loan
The company that you hire will often offer financing packages. Look at the terms and conditions before signing up. Make sure the rates and terms are competitive. Also, check the source of the contractor. This is to ensure that they’re not getting any kickbacks from any lenders.
4: Home Equity Line of Credit
If you have accumulated equity, then a home equity line of credit should work. One thing is that it offers low interest rates and you can use your home as collateral. Now, you can borrow a certain amount based on the home equity you have built. Of course, you have to wait for approval and schedule inspections too.